IT is very strange to see that the stock exchange index is going up in spite of the poor economy and the deteriorating law and order situation. This upward drive is alarming as we recently witnessed a market crash.

It is being reported every now and then that the Karachi Stock Exchange has made another record high. This not only seems extraordinary but also not a genuine trend showing a sharp increase. Beside index, now high volumes are being traded. In market terminology the bulls are very active.

Only a few key players of the market are active, and that too in the presence of low economic indicators. Is something fishy brewing up again?

In 2008 we witnessed a massive decline of this market because of which many small investors suffered huge financial losses.

An inquiry was ordered after the crash and a comprehensive forensic report complied. But details of this report were not made public.

At that time it was believed that powerful brokers were behind all this. After investigation, one was booked for looting and plundering money.

This dramatic rise is again reminding us of that scenario. With rising uncertainty in all aspects, the key players are perhaps acting on behalf of others to give another shock.

The State Bank recently decreased the interest rates. Listed companies at the KSE also posted losses. Investment activities are almost zero. How is the KSE index going in the opposite direction?

A few analyses and reports tell investors it is good time to buy low-priced shares while others invite people to put money for so-called attractive ‘blue chips’.

In case of loss, the small investors will suffer. All financial and prudential regulatory institutes should act on time to save people from losses.

They should use their authority to check this unusual phenomenon. Both the State Bank and the Security and Exchange Commission of Pakistan should intervene.

After proper investigation and scrutiny, they should issue warning to investors. Those who are involved in creating this hype should be exposed. By this many will be spared from suffering any loss.

DR ALFRED CHARLES Karachi